With an increase
in the utilization and popularity of bitcoins and the overall blockchain
ecosystem, anonymousness in transactions is becoming the preference of many
users. There’s some distinction between anonymity while transacting via
cryptocurrency, and anonymity while using a search engine. As Bitcoin’s one of
the many fundamental principles is decentralization, keeping some portion of
the user’s information hidden is somewhat complicated. The complicatedness
occurs concerning the algorithms being written at the backend. Another reason
for the increase in anonymity is the fact that models around the blockchain
framework are experimenting on making it utilized across industries and in a
sustainable fashion. This piece focuses on various protocols through which one
may decide whether a scenario could be built practically or not.
The whole concept
of bitcoin when designed and built was to become an anonymous payment system. A
framework where information between public key/Bitcoin addresses isn’t linked.
But in practicality, there exist some properties through which one could
analyze the features of a transaction, and how a transaction is being implemented.
Through some techniques, one could identify the owner’s behavior via bitcoin
address. One reason identified for anonymity not being effective was that not
many users were present in a network making a specific feature get quite
visible and easy to detect. Anonymity in a protocol may not operate properly
without a communication channel. As the anonymity characteristic is still being
researched and experimented by technical experts to date, there’s a probability
that a fresh prototype may be built in the future.
being developed to make transactions anonymous is Dandelion. Anonymousness
includes two variables, ‘recall’ and ‘precision’. A recall is a probability of
identifying, while precision detects the exactness of the estimator. The
prototype uses a dandelion spreading technique for achieving anonymity. The
technique consists of two phases. In the first phase, the message is spread
over a randomly-selected area for a non-structured number of hops. In the
second phase, the message is broadcasted using diffusion until the entire grid
receives the message. Employing these phases helps in optimizing anonymity and
The most recent
digital currency started being utilized by some percentage of the population in
Cryptocurrency. The idea of using a decentralized currency daily came around
2008-09, but it became a reality only around 2014-15. A currency’s worth
increases as the trust in individuals using it increases. It was so when gold
or silver was used as a currency. It certainly was true and even is true up to
some extent even today regarding currencies like Dollar, Yen, Pound, etc. The
same is happening with cryptocurrencies. As major financial institutions are
realizing it, they’re also starting to invest in them. But to avoid using it illegally,
some form of tracking is required for accountability’s sake. One such prototype is mentioned below.
As one may see in
the image above, the proposed prototype takes into account a little complex
route involving regulatory organizations also so that the probability of the
transaction being done illegally doesn’t arise. There are many web browsers
(like Tor) in which money laundering, funding terrorist organizations, and
similar activities take place. To avoid such scenarios and to intensify the
reliability, and trust of the user towards regular usage of cryptocurrencies,
such type of fresh mechanism was built.
Many experts have
been researching in resolving the anonymity issue. Another piece of research shows that through ‘epochs’ (on-blockchain) and ‘micro-payment
channel networks (off-blockchain)’, the issue of anonymity could be resolved. By
using the off-blockchain method, the confirmation of blocks happens within a
few seconds rather than a few minutes. Using these techniques, it was observed
that the transaction was unforgeable, DoS Resistant, and Sybil Resistant as
well. Employing the on-blockchain and off-blockchain technique turned out to be
quite effective, just like its comparatively harder (almost impossible) to
crack an iOS operating system in comparison with an android or a windows
Bitcoin via P2P network Traffic:
speaking, bitcoin functions as a data structure. Just like in a linked list,
some data from the prior block is used, after which it’s added and then sent to
the consecutive block. The block which receives the data again takes some data
as input, and then adds the data before sending it to the consecutive block. P2P network uses a gossip protocol for circulating the messages
to the rightful receiver. CoinSeer was developed after getting inspired by Dan
Kaminsky’s Black Hat presentation in 2011. To develop the protocol, initially,
a certain type of pattern was found. Then, the pairing of bitcoin address and
internet protocol (IP) was created. After this, the pairings were computed and
analyzed statistically. Then came the part where ownership pairings were
detected. Finally, the insignificant pairing was removed. In the end, applying
highly conservative constraints, the desired outcome was achieved.
Generation Bitcoins Anonymization Techniques:
With constant up-gradation
in technology and blockchain being decentralized, mechanisms to overcome the
anonymity issue becomes like a ‘piece of cake’. The second generation of anonymization techniques aims at eliminating the single point of failure while
being deployable in the present Bitcoin ecosystem. Some techniques include Fair
Exchange, Coin Swap, Coin Join, Stealth Address.
The above image is
an example of Coin Join. In layman words, using this technique is like using a
one-time-password (OTP). The transaction’s input needs to have a genuine
signature independent of other inputs. Each input is computed over the complete
transaction and hence is valid for only that particular transaction. The
anonymity in this type of technique depends on the extent of differentiability
and the difficulty of inferring valid subsets of inputs and outputs.
As one could infer that numerous prototypes have been developed to date, and still researches are going on to build a foolproof technique. PrimaFelicitas is among few companies which have offices located at prime areas across the world i.e. where research around the blockchain happens 24*7. Besides that, the company’s founders have an educational background in computer science in the engineering field, and extensive experience related to such technologies as well. To know more about the upcoming platforms or to get some assistance to contact at PrimaFelicitas.
Ethereum Co-Founder Vitalik Buterin Burns $6.7 Billion in Shiba Inu (SHIB) Tokens
Vitalik Buterin, who was gifted half of Shiba Inu’s total supply, has burned 90% of his holdings worth nearly $7 billion. The Ethereum co-founder further said he would allocate the remaining 10% to charitable organizations while also praising the “dog token community” for its generosity.
Buterin Burns $6.7B in Shiba Inu
The Dogecoin rise to the top led to the creation of numerous copycats that garnered significant attention in the past several weeks. Perhaps none became more popular than the self-described DOGE-killer – Shiba Inu.
One of the compelling features came from the anonymous developers who decided to send half of the total supply to Vitalik Buterin – the co-founder of Ethereum. The other half remains locked for liquidity on Uniswap.
Buterin, who donated 50 trillion SHIB tokens (and other dog-related digital assets) to India Covid Relief Fund last week, has decided to burn the majority of his Shiba Inu holdings now.
“I have decided to burn 90% of the remaining Shiba tokens in my wallet. The remaining 10% will be sent to a (not yet decided) charity with similar values to CryptoRelief (preventing large-scale loss of life) but with a more long-term orientation.” – he explained in the transaction hash.
Buterin outlined the severe problem COVID-19 has created for the entire world and added, “it’s important to think about the longer term future too.”
Upon the time of the transaction, the 410,24 trillion SHIB tokens Buterin sent from his wallet had a value of about $6.74 billion.
The booming popularity of SHIB caused a massive price surge in the past few weeks. It culminated in an all-time high at nearly $0.00004 after a listing on the world’s leading crypto exchange – Binance.
The Generosity of Dog People
Ethereum’s co-founder touched upon his aforementioned decision to donate a substantial amount of his dog tokens to charity organizations.
“Plenty of dog people have shown their generosity and their willingness to not just focus on their own profits but also be interested in making the world as a whole better.”
However, he also attracted some heat following his actions as some angry developers created coins with offensive names. As such, he urged the community to refrain from sending him new tokens without his consent in the future.
“I don’t want to be a locus of power of that kind. Better to just print the coins into the hands of a worthy charity directly (though do talk to them first.)”
Legacy Records, The First Record Label Paying Music Artists In Crypto
From painters to digital artists to musicians, crypto continues to find integration across artistic mediums. Music continues to be a field that is ripe for revitalization, from a business standpoint. Accordingly, a number of different musicians have been releasing songs and albums as NFTs. Now, we have what’s being reported as the first official record label looking to get involved. The label looks to have artists join the ranks of other musicians getting involved in crypto.
In a press release issued to start this week, Legacy Records CEO Keishia McLeod said it came down to “either get involved or get left behind”. McLeod cited unique income stream opportunities for artists and closed by saying that “this is the future, not a trend”. McLeod has stated previously her intent to drive the label to be at the forefront of leveraging emerging technology in music.
There are two major buckets contributing to Legacy’s approach. The first is the most notable, as the label will become the first to offer artists an opportunity to receive their advance and royalty payments in the form of crypto. The second is to engage artists with NFTs, allowing fans to participate in auctions for unique content. The label’s specific plans around NFTs, and number of artists seeking to get paid in crypto, have not yet been disclosed.
As the crypto market grows, both artists and businesses are getting involved | Source: CRYPTOCAP-TOTAL on TradingView.com
Legacy Music’s Broader Business Growth
Las Vegas-based Legacy Records, not to be confused with Sony’s Legacy Recordings, will look to take advantage of the potential press buzz from the announcement. However, in tandem with the release, the label also announced a to-be-name music distributor who has also agreed to pay Legacy Records artists in bitcoin. The label also merged with New Jersey entertainment lawyer Navarro Gray’s ‘The Gray Firm’, to provide legal guidance around digital execution.
McLeod has noted previously that the label has desired being a mainstay in revolutionizing the way music artists do business. In a January interview with the LA Tribune, McLeod cited Netflix’s impact on the film industry, adding that “we haven’t seen that yet in this industry, but it’s coming. We’re going to be a large part of making that happen”.
Related Reading | Reviewing Topps MLB’s First Swing At NFT Tech
Music Artists Emerging Into Crypto
Legacy’s roster has the potential to join a growing list of music artists that continue to engage with crypto and NFTs. Last month, we wrote about long-time hip-hop artist Eminem partnering with Nifty Gateway to release original instrumental beats. Saturday Night Live promptly had a sketch explaining the digital collectibles parodying Eminem’s “Without Me”.
Other musicians engaging with NFTs include DJ Premier, 3LAU, The Weeknd, Linkin Park’s Mike Shinoda, and more.
Each week, our team recaps the week’s NFT action with ‘NFTs In A Nutshell‘ – covering everything NFT, from sport, music, and more.
Featured image from Pixabay, Charts from TradingView.com
Coinsmart. Beste Bitcoin-Börse in Europa
XRP, Dogecoin, Chainlink Price Analysis: 17 May
Dogecoin required to counter bearish conditions before a jump above $0.569 resistance. Lastly, Chainlink needed to push above $45.5 to trigger a bullish comeback after a descending triangle breakdown.
Gains made over the last three days were impressive especially considering a bearish broader market, but sellers returned at $1.52-resistance. At press time, the cryptocurrency traded within the channel $1.52-$1.31 and reflected a degree of equilibrium between the buyers and sellers. For those hoping to make profits from a volatile XRP market, ADX’s movement dimmed expectations. Since mid-April, ADX has been on a steady decline and a period of consolidation seemed likely.
RSI hovered in the neutral territory around 50. A symmetrical triangle awaited a breakout to the upside and the Fibonacci tool presented a few target levels above the 200% extension level north of $3 (not shown).
On the daily timeframe, Dogecoin showed some sideways movement as bulls prepared for the next upswing. The channel between $0.523 and $0.373 was bolstered by the 20-SMA (blue) and formed a reliable buy zone should another dip occur.
As mentioned earlier, breaking above $0.569 resistance could trigger another rally in the DOGE market. Steering clear of $0.73-resistance would heighten the chances of DOGE touching $1. However, bearish conditions still presided and had to be countered first before any talks of an upswing. Awesome Oscillator noted bearish pressure after a series of red bars. MACD line remained below the Signal line but a bullish crossover could signal the onset of an uptrend.
Chainlink broke south from a descending triangle and a single candlewick dropped as low as $35.1- representing losses of 14% from the bottom trendline. Now below its 50-SMA (yellow) on the daily timeframe, bearish sentiment could lead to another sell-off towards $31 for LINK. On the other hand, some buying volume was noted on the 4-hour timeframe. A pickup in volumes and buying pressure could lead to a resurgence above $45.5 and this would likely push LINK beyond $50. A broader market recovery could act as a catalyst for such a price swing.
Meanwhile, RSI’s lower highs confirmed weakness after LINK formed a peak at $52.9. Even though Chaikin Money Flow dipped over the past couple of days, the index was still well above the half-line as capital inflows outmatched outflows.
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